What to consider if you invest in Portugal
Portugal was one of the countries which was the most strongly hit by the economic crisis of the late 2000s. Thanks to a policy of rigor and the implementation of reforms of the banking sector, of pensions and of the labour market, the country has since regained an interesting economic competitiveness and has begun a deep diversification of its exports (both sectoral and geographical). Its economy has stabilised, with a GDP growth of 2.2% in 2019 (IMF) based on its main strengths:
- A skilled and often multilingual workforce at a significantly lower cost than other Western European countries
- A system promoting investment in innovation and R&D, which has enabled the country to attract new FDI, essential to its development. The large number of multinationals from all sectors testifies to it.
- Its strategic international relations with Europe, Africa and America, in addition to its membership of the European Union, allow Portugal to maintain close ties with its former colonies such as Brazil, Mozambique, Macao and Angola, and can serve as a gateway to other Portuguese-speaking markets
- Early sectoral and geographical diversification of exports
- Political stability and fluid governance
- A good business environment (the country was ranked 39th on the World Bank’s Doing Business 2020
Being part of the European Union
Portugal’s membership with the European Union is another important factor to consider if you want to set up a company in Portugal. Membership of the European Union means common currency and free movement and trade within all member states. Portugal is one of the leading members in the European Union in terms of providing services, biotechnology and information technology.